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All About Bookkeeping Services The word accounting covers a lot of different services. Accounting is simply defined as production of business’ financial records and principles of accounting are applied to finance, accounting, auditing and bookkeeping. It was in Mesopotamia where Accounting originated in which people use accounting methods in an effort to record the growth of their herds and crops. A thousand years later, it has grown to a more complex and sophisticated system that we use today to meet the needs of governments, financial institutions and businesses. So what makes accounting as well as bookkeeping different services even though both of these two are concerned in dealing with the finances of the company? That’s where their similarities end due to the reason that bookkeepers provide the foundation to create good audit trail of the daily financial operations that the company has. These activities can be anything from categorization for preparation and reviewing data to hand over to the accountant or accounting department of the business, providing the business owner cost and cash flow information which helps them support and grow the business, assist in building solid financial team for the business from accountants, payroll preparation firms etc., reconciling cash accounts and bringing ledges to trial balance stage, setting up sound financial filing system based on the set standards of a single or double entry bookkeeping and recording daily financial transactions of a business.
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Accountants are taking the information that the bookkeepers have provided them. They’re going to make reports and do analysis of it once they have the info, this is to help the business get financing, plan for the future, put a value on their business and prepare for tax the tax reporting. The phrase accountant is actually a French word “compter” meaning to score or count.
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Accountants are also helping business owners in making decisions of what sort of company they want to create from corporation, LLC, partnership, sole proprietorship and the likes. Tax preparation, forensic accounting, cost accountants and business valuation are other branches of accounting services that are required by the business to manage finances properly. For a number of small business owners, the utilization of bookkeeping service regularly is a vital part of their success. In the long run, this will mean to have strong foundation and save money as well. There are some businesses in this modern time that have incorporated software or spreadsheet system to help them do bookkeeping on their own. There’s nothing wrong with this so long as proper training is provided to have basic understanding of bookkeeping as well as the software’s function.